Jet Airways quarterly net loss soars to Rs 495.53 cr,shares in tailspinhttps://indianexpress.com/article/news-archive/web/jet-airways-quarterly-net-loss-soars-to-rs-495-53-cr-shares-in-tailspin/

Jet Airways quarterly net loss soars to Rs 495.53 cr,shares in tailspin

Jet Airways' shares ended the day 3.69 per cent lower at Rs 562.70 on the BSE.

Naresh Goyal’s Jet Airways today reported a net loss of Rs 495.53 crore for the fourth quarter ended March 31,2013 compared to loss of Rs 298.12 crore in the same period year-ago.

Total income from operations declined to Rs 3,921.92 crore in the March quarter from Rs 4,041.61 crore in the year ago period,Jet Airways said in a filing to the BSE.


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For the full year ended March 31,2013,the airline reported a net loss of Rs 485.50 crore against Rs 1,236.1 crore in the same period last year.

Shares of the company ended the day 3.69 per cent lower at Rs 562.70 on the BSE.

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Meanwhile,shareholders of Jet Airways today approved the sale of 24 per cent stake to Abu Dhabi-based Etihad,with the Indian carrier’s Chairman Naresh Goyal saying that the deal will improve profitability,reduce costs and lower the debts.

At the airline’s Extra Ordinary General Meeting (EGM) today,shareholders approved the proposed issue of shares on a preferential basis to Etihad. The shares will be allotted after receiving regulatory approvals.

As part of the deal,Etihad will acquire 24 per cent stake in Jet Airways for about Rs 2,058 crore. The deal marks the first investment by a foreign carrier in an Indian airline since the change in the country’s FDI policy last September.

Etihad deal will bring down company’s debt to USD 1.5 bn: Jet

Jet Airways today said its 24 per cent stake sale to the gulf carrier Etihad will bring down its debt to USD 1.5 billion from the current USD 2.1 billion.

“The deal will also help us bring down our current debt of USD 2.1 billion to 1.5 billion,” Jet Airways Senior Vice-President for commercial finance and investor relations,KG Vishwanath told the company shareholders at an Extra Ordinary General Meeting (EGM) convened to seek approval the stake sale deal with Etihad Airways.

Vishwanath said that of the total USD 2.1 billion debt,USD 700 million is on account of working capital which has been borrowed at high interest rates while the remaining USD 1.4 billion is aircraft-related loan.

As part of the deal,Etihad will acquire 24 per cent stake in Jet Airways for about Rs 2,058 crore. The deal marks the first investment by a foreign carrier in an Indian airline since the change in the country’s FDI policy last September.

Etihad’s investment would help the carrier reduce its high-cost borrowings,he said.